Morgage Modification Blunder...could use some feed back.

I could use some feed back...

I ask bank for a loan mod on my house which I paid 389k for and is now worth 300k.

Bank grants me trial period  of 3 months at reduced rate.

I complete trial period and call to see what next.

They say they are back logged so just keep making new payment amount.

11 months go by and still no final.

Get letter stating I missed a payment and the loan mod has been tossed out.

I have records showing I have made all payements.

They want me to go back to paying old bubble era payment and pay lump some including late fees ect to get current.

What should I do?

Thanks!
  • June 07 2010 - Solvang
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Answers (6)

you mean they want you to go back to paying what you agreed to pay?: how ridiculous! why should someone have to pay the amount they agreed to pay? If the home value went up, I am sure you would happily pay them more than the original payment of course...

Well, assuming this is a purchase money loan your options are:
1. pay it.
2. try to short sale the home.
3. try to negotiate  a deed in lieu of foreclosure with the bank.
4. quit paying the mortgage. Live for free for six months or a year or whatever, and then move out after they foreclose. Save a lot of money during this period, as your credit will be shot.

If this is a refinance loan, or you live in a recourse state where the bank can come after you for the deficiency, (California where you appear to live is not on purchase money owner occupied loans) You will need to see a good lawyer and see about the options of declaring bankruptcy.

Seek good legal and tax advice in any case.
  • June 07 2010
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you know the funny thing is i would have gladly paid the original payment but they offered me a lower intrest rate to knock a few hundred bucks of my monthly... but thank you for your kind words and advise.
  • June 07 2010
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Walty,
I'm sorry to hear about your circumstance.  Keep in mind how overwhelmed these service centers are due to the current state of the economy. Also realize that more often than not they are staffed with entry level employees who sometimes find it simpler to say "No" than actually try to assist you. I'm not suggesting you shed any tears for them but, if you have made all payments on time as agreed I would continue to make your case.  Ask to talk with a manager and ask for that persons manager. In a past life I worked in a customer service center for a short time and the person answering your call is not often the decision maker and does not have the authority, knowledge or background to really provide too much assistance.  Dig your heals in, state your case and show your supporting documentation.
I hope this helps and I wish you good luck!!
Jay
  • June 08 2010
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thanks Jay I will.

Yes I gathered as much from the first lines at CHASE were entry level and did get to they're supervisor so thank you.

keep ya posted!
  • June 08 2010
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Walty, get the name and number of the manager for every person you speak with, eventually you'll get to a decision maker.  If they refuse to give you the number ask to speak with the manager personally and hold on the line as long as it takes for them to get to the phone.

You have to be a pitbull in this situation, and typically the squeaky wheel gets the grease.  
  • June 16 2010
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Walty804 quote from oct 2007, here on zillow:

"there are alot of very happy property owners out there not all are grimissing over the real estate down turn. i love my place and i dont care if it drops in value over the next few years. when its time to move it will be either sell depending on the market or have another rentel. i have some propertys that are doing better than others but am glad i have them. i may rent a place to live in again and still keep the ones i have. the main thing for me is not let where or what i live in dictate who i am as a person. the main thing in life is health and happieness, money and investments will not achive that on there own, if you try to hold on to something to tight you most certainly will lose it. imo "

And now, you are asking for a loan modification??????? really?????
  • June 24 2010
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